US Plastic Foams Market

The Freedonia Group Incorporated is a leading international industry study/database company. Founded in 1985, Freedonia publishes more than 125 studies each year, covering such areas as building materials, chemicals, health care, packaging, pharmaceuticals, plastics, security, and many other industries. Studies cover entire industry sectors as well as key niche markets. Each study includes such valuable intelligence as growth markets and products, market share, product analyses and forecasts, market analyses and forecasts, and company profiles.

Studies specific to the US also place the industry into its international context. This comprehensive study analyzes the US market for plastic foams. Historical (2002, 2007, and 2012) data and forecasts for the years 2017 and 2022 are presented by resin type (polyurethane, polystyrene, and other foams) and market (packaging, construction, household products, motor vehicles, and other markets). Demand is presented in millions of pounds and includes both merchant and captive segments. As used in this report, demand is equal to domestic production plus imports less exports (apparent consumption) and is synonymous with sales and consumption.

Information and data on the plastic foams industry were obtained from a variety of primary and secondary sources including government associations, industry participants, online databases, and other Freedonia studies. Trade associations were another important source of information and included the American Plastics Council (American Chemistry Council), EPS Industry Alliance, Extruded Polystyrene Foam Association, International Sleep Products Association, Polyurethane Foam Association, and Polyurethane Manufacturers Association. Other sources included various trade publications, such as ICIS Chemical Business, Plastics Engineering, Plastics News, and Plastics Technology.

Various other government and trade association publications, trade journals, corporate annual reports, SEC Form 10-K filings, promotional literature, industry reports, security analyst reports, and other publications were also utilized, as were online databases. Throughout this study, demand is related to various indicators for comparative purposes and to facilitate further analysis. Tabular details may not add to totals due to independent rounding, and calculated ratios reflect unrounded numbers. The macroeconomic indicators used in this study were obtained from The Freedonia Group Consensus Forecasts dated August 2013. Due to the Bureau of Economic Analysis’ use of chain-weighted price indices, inflation-adjusted Gross Domestic Product components (2005 dollars) do not add to the total.

US demand to reach 8.6 billion pounds in 2017

US demand for plastic foams is forecast to reach 8.6 billion pounds in 2017, mounting a healthy recovery from the declines posted during the recessionimpacted 2007-2012 period. The construction market is anticipated to enjoy particularly robust growth prospects, as renewed strength in construction activity generates significant opportunities for foam insulation products. Increased new housing activity, along with heightened consumer spending levels, will bode well for foams used in household products such as bedding, furniture, and appliances. Gains in this market will also be aided by the expanding popularity of memory foam mattresses. In the motor vehicle market, advances will be promoted by rising vehicle output and efforts to enhance safety and comfort.

Packaging to remain leading outlet for plastic foams

Packaging will remain the leading outlet for plastic foams through 2017, accounting for over 30 percent of total volume. While this sector tends to be less cyclical than other industries due to the significance of nondurable goods such as food, the market is mature and will post steady but below average advances through the forecast period. Gains will be constrained by ongoing environmental concerns regarding the disposal of packaging foams, which have resulted in the establishment of bans against foam foodservice containers in certain localities. Nevertheless, demand will continue to be supported by the cost and performance advantages of plastic foams over alternative materials, and by opportunities for foam used to protect delicate items. Moreover, efforts to promote sustainability will generate more interest in biodegradable packaging foams.

Bedding, carpet cushioning to drive flexible polyurethane foam demand

Polyurethane represents the leading resin in the plastic foams market. Flexible polyurethane foam will remain the dominant product type, outpacing its rigid counterpart through 2017 based on especially rapid growth in the bedding and carpet underlay markets, where it is valued for its cushioning properties. Strong gains for rigid polyurethane foam will be propelled by a healthy rebound in construction activity and by changes in building codes and construction practices that call for structures to use energy more efficiently. Rigid polyurethane is one of the best materials available for roof and wall insulation, insulated windows and doors, and air barrier sealants. However, polyurethane foam insulation will continue to face competition from fiberglass and polystyrene foam.

Waste disposal to continue hampering polystyrene foam demand

Polystyrene accounts for over one-third of demand for plastic foam and will maintain a sizable share of the market through the forecast period based on its excellent protective and insulative capabilities, moisture resistance, and low cost. However, advances in the large packaging sector will be restricted by ongoing solid waste disposal concerns about the use of disposable foam products and rising competition from paperbased materials, which are viewed as more eco-friendly. Through 2017, expanded polystyrene foam is projected to outpace its extruded counterpart, stemming mainly from its use in insulation, molded foam protective packaging, and insulated shipping containers.